Will it? Won't it? FTSE 100 Index knocking on the door of 7000 points

It’s been an exciting few months for the FTSE 100 Index culminating in yesterdays news that it had closed at a record high. It closed at a new peak of 6949.63. The previous record close was 6030.02 set at the height of the dot com boom. Back in December 1999 when it reached its last peak, who would have thought that over 15 years later we would still be waiting for it to break the elusive 7000 barrier.

Yesterday’s rise came after Eurozone’s finance ministers approved reform proposals submitted by Greece. The agreement saw Greek stocks’ equivalent index rise 10% in a day. Stock markets around the world have been buoyed by the quantitive easing/stimulative programmes put in place after the global crisis. Equity investors have been riding the wave of cheap money fuelled by unconventional monetary policies which has seen this bull market extend well beyond expectations. However the FTSE 100’s rise has been slower than those of stock markets in the US and Germany.

So? Will we finally break through the 7000 point barrier?

 

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